By Julius Heil, President and CEO, Intalere
Margin compression has wreaked havoc on the bottom line of healthcare providers over the past several years. This is an area where it pays to be more proactive than reactive. Comprehensive cost and quality data are critical to project success. Discussions should start with benchmark data for the facility. This data creates the case for the cost saving initiative and establishes a quality and outcomes baseline for building protocols and incentive goals.
Cost accounting systems and/or financial decision support metrics are important components to help capture and interpret “big data,” but the real issue is not that you are acquiring large amounts of data, it’s what you do with your data that matters. The hopeful vision is that organizations will be able to harness relevant data and use it to make the best decisions in terms of balancing the price/value equation.
More than just the purchase costs and what you actually pay at the time of transaction, supply chain professionals must develop a keen understanding and control of some of the more unseen costs involved in purchasing.
Check out the latest video in our Flash Series, Measure and Manage Cost and Margin and stay tuned in the coming weeks for more posts and videos about 12 Things Healthcare Must Achieve.
You can also download the executive briefing at intalere.com.
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